I see slightly different but still weird behaviour. When selecting the entirety
of lines 2 and 3, and run M-x comment-region, I get this:

#+BEGIN_SRC emacs-lisp
;; (defun org-xor (a b)
;;   "Exclusive or."
;;   (
   if a (not b) b))
#+END_SRC

Versions:

  GNU Emacs 29.4 (build 1, x86_64-pc-linux-gnu, GTK+ Version 3.24.43, cairo 
version 1.18.2)

  Org mode version 9.6.15 (release_9.6.15 @ /usr/share/emacs/29.4/lisp/org/)

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